Four days of temporary unemployment at Volvo Car Ghent next week

Most of the approximately 6,500 workers are unemployed and some 650 staff members also stay at home. Production lines are being modified for electric model building and “changed market demand” is also given as a reason.

The temporary unemployment is not a result of the disappointing demand for electric models that other brands are facing. Two weeks ago it became clear that sales of electric cars in Europe are falling, because Germany has abolished the charge. Mercedes-Benz saw sales of electric vehicles fall 8 percent in the first quarter. Volkswagen also saw a 3 percent decline. And Tesla is seeing its first drop in sales figures since 2020 and wants to cut 14,000 jobs worldwide.

“Unprecedented sales figures”

But two electric models are being built in Ghent for the European market, the XC40 (recently named EX40) and the C40 (recently named EC40). And its European sales have not decreased since the beginning of this year. “On the contrary,” says René Aerts Jr. from Volvo Car Belux. There are “unprecedented sales figures” in the first months of 2024, making Volvo the third largest producer of electric cars in Europe, after BMW and Tesla.

“By being one of the first car manufacturers to opt for electrification and creating models that fit, Volvo is proving that its strategy was right,” says Aerts. Volvo wants to reach half of the world’s electric car sales volume by 2025. The last gasoline engine must be sold by 2030.

But at the same time, the factory has to change and that also led to temporary unemployment during the Easter holidays. The band has been largely silent for a total of 15 days this year.

Hybrid cars

Last year, 230,000 cars were built in Ghent, and next year there should be more. The factory cannot focus only on electric vehicles, because the demand for hybrid vehicles also remains very high. Both the XC40 and C40 are available in hybrid variants. The factory responds to this, it seems.

In the long term, the arrival of the EX30 should anchor and even increase employment in Ghent, and therefore the factory is hiring. Although there will also be temporary unemployment for the modifications required to produce the EX30.

Volvo’s temporary contracts will be extended by six months. Hiring continues for technical profiles and other in-demand occupations.